FTX Creditors Have Not Been Repaid Yet: Everything You Need to Know 👀

Key Points: FTX’s restructuring plan still needs court approval, with a hearing scheduled for October 7. Creditors may have to wait up to a year to recover their lost funds. Creditors may receive only 25% of the value of the lost crypto assets.

Rumors have circulated that FTX creditors will receive a $16 billion payout this week; however, contrary to rumors, repayment may take longer than expected.

The repayment process is expected to be as follows:

The final hearing to approve the repayment plan is scheduled for October 7.

Claims under $50,000 will be processed first and may be reimbursed by the end of this year.

Claims over $50,000 will be processed next and reimbursed starting in 2024.

Debtors have purchased about 50% of the claims worth $5.5 billion, which are expected to be satisfied by Q2 2025. The remaining claims may take 2 to 3 years to resolve.

FTX's latest filing also shows that creditors will only be able to recover a small portion of their lost crypto assets.

Instead of receiving the full value of their lost assets, creditors will receive the U.S. dollar equivalent of the value of their assets when FTX collapsed in November 2022.

Specifically, if a user lost one BTC, they would not receive the current value of the token, which is more than $65,000. Instead, they will receive the U.S. dollar value of 1 BTC in November 2022, which is about $16,000, equivalent to a quarter of its current value.

The harsh reality facing creditors now is that they are being paid a small fraction of their debts - perhaps 10-25% of the original value.